Crown Holdings launches $675 million term loan B at Libor plus 325 bps

By Sara Rosenberg

New York, Oct. 8 – Crown Holdings Inc. (Crown Americas LLC) launched on Wednesday its $675 million seven-year senior secured covenant-light term loan B (Baa3) with price talk of Libor plus 325 basis points with a 0.75% Libor floor and an original issue discount of 99˝, according to a market source.

The term loan has 101 soft call protection for six months, amortization of 1% per annum and a ticking fee of half the spread from days 31 through 60, the full spread from days 61 through 90 and the full spread plus the Libor floor thereafter, the source said.

There is a $1.2 billion incremental allowance, subject to 50 bps MFN.

Commitments are due at 2 p.m. ET on Oct. 17, the source added.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Bank of America Merrill Lynch, BBVA Securities Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities LLC are the joint lead arrangers on the deal.

Proceeds will be used to help fund the acquisition of Empaque from Heineken NV for $1,225,000,000.

Other funds for the acquisition will come from cash on hand, additional borrowings under the company’s senior secured credit agreement or through other means.

The term loan B is expected to close on Oct. 24, while the acquisition is expected to close in the fourth quarter of 2014 or the first quarter of 2015, subject to customary conditions, including competition authority approval.

Crown is a Philadelphia-based consumer packaging company. Empaque is a Monterrey, Mexico-based manufacturer of aluminum cans and ends, bottle caps and glass bottles for the beverage industry.

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